Profimex Market Review Update – October 20, 2020
Pressure on New York City Commercial Real Estate Worries Investors
As COVID-19 continues to disrupt New York City commercial real estate, many potential buyers and lenders are hesitant to purchase additional properties such as hotel and retail assets. This has caused many large investors and banks to expect the industry to be hit hard in the near-term, specifically as it relates to the commercial mortgage-backed securities market for New York City real estate. “Distress in financial markets was all about residential mortgage-backed securities in 2008 and energy in 2015,” said Daniel McNamara, a principal at MP Securitized Credit Partners who is betting prices for some CMBS indexes will fall. “In 2021 it will be all about commercial real estate and the securities linked to it.”
Blackstone Doubles Down On Life Sciences By Selling BioMed Realty Trust To Itself For $14.6B
Blackstone, the world’s largest real estate investor, has continued to demonstrate the strong demand for life science real estate post-COVID 19. The company recently announced in a press release that one of its funds has agreed to recapitalize its ownership of BioMed Realty Trust, the largest private owner of life sciences real estate in the country. Additionally, Blackstone’s Co-Head of Real Estate, Kathleen McCarthy, explained that many of their investors continue to be “eager” to maintain or increase their allocation in life science real estate.